Vietnam Sourcing: Tableware 2018 Suppliers & products

Our team has curated a collection of top-selling products from tableware suppliers across Vietnam.

A number of these suppliers have websites on GlobalSources.com with full company details, product images with specifications, manufacturing capability and complete contact information. Click on the company names or product images to view their full profiles and product offerings on GlobalSources.com.

Statistics from DESA/UNSD, United Nations Comtrade database, show that Vietnam exported over $323.5 million worth of tableware and kitchenware in 2016.

Ceramic, porcelain and wooden models accounted for 18 percent of the export value.

Export sales are expected to increase at least 10 percent in coming months.

Craftsmen and artisans working with ceramics, wood and different plant-based fibers can be found across the country.

The country has lower minimum wages compared with China, Malaysia and several other countries in Asia.

Bilateral and multilateral trade deals facilitate exports to various economies.

For many suppliers, the main challenge is how to maintain profitability amid rising costs and intense competition.

Various raw material costs have gone up 10 to 30 percent in the past 12 months.

Several suppliers are keeping a buffer stock to minimize the effect of raw material unavailability on prices and lead times.

Most tableware suppliers that use bamboo, rattan and other natural materials are part of the handicraft industry.

These companies usually employ no more than 100 workers.

Makers of bamboo and rattan items can be found in more than 700 craft villages in the country.

Greater environmental and social awareness are raising demand for handcrafted tableware and other products made of bamboo, rattan, water hyacinth and other materials that are considered sustainable. Models adopting recycled materials such as paper and eggshell are increasing in popularity as well.

To take advantage of the opportunities that this trend offers, suppliers are exploring different raw material combinations, colors and patterns to diversify their selections.

Statistics from DESA/UNSD, United Nations Comtrade database, show that the country sent abroad over $323.5 million worth of ceramic, porcelain, wood, glass and plastic tableware and kitchenware, and metal cutlery. Models made of ceramic, porcelain and wood accounted for 18 percent of the value.

Vietnam exported nearly $6.9 million worth of porcelain tableware and kitchenware under HS code 691110 in 2016, up 12 percent from 2015. The UK was the top market, accounting for 25 percent of the export value.

Exports of ceramic items under HS code 6912 dipped 0.5 percent year over year to approximately $10.1 million. Germany accounted for 36 percent of the value, while China, the US and Japan together contributed 41 percent.

For wooden tableware and kitchenware under HS code 4419, the value of products sent abroad in 2016 inched up 4 percent year over year to nearly $40.2 million. Japan accounted for 38 percent of the value and South Korea 21 percent.

Statistics for 2017 are currently not available from the database. Preliminary figures from Vietnam’s General Department of Customs, however, show that the country sent abroad $269.2 million worth of various bamboo and rattan products during the period, an increase of 2.4 percent from 2016. Exports of ceramic items amounted to $465.8 million, up 8.2 percent from 2016.

Japan was the top importer, accounting for $125.2 million worth of products. The US was another key destination, with imports worth $120.2 million.

Suppliers expect overseas sales to increase 10 to 20 percent in coming months, anticipating greater demand from the US, Japan and the EU. A number are looking to join more international trade shows such as the Ambiente Fair in Germany, Maison et Object Fair in France and the Hong Kong Mega Show to promote their products.

Competitive advantages

A large workforce, relatively low labor costs and the domestic availability of various raw materials enable Vietnam’s tableware industry to export a wide range of handcrafted items. Most suppliers to accept low quantity minimum orders of products that are 70 percent handmade.

Vietnam had about 54.4 million people aged 15 years or older in 2016, according to data posted on the website of the country’s General Statistics Office. Literacy rate for this population was 95 percent.

The country’s labor force includes craftsmen and artisans working with ceramics, wood and different plant-based fibers. Many of these workers can be found in craft villages across Vietnam.

The country has lower minimum wages compared with China, Malaysia and several other countries in Asia. Effective January 2018, Vietnam’s regional minimum wages range from 2,760,000 ($119.26) to 3,980,000 ($172) Vietnamese dong per month.

In terms of raw materials, being able to source most of these locally enable tableware makers to stock inputs and minimize the effect of cost fluctuations on product prices. Rattan, bamboo, water hyacinth, sedge and other plant-based fibers are readily available in various provinces.

Vietnam’s existing free trade agreements (FTAs), as well as those expected to come into effect, facilitate exports of various products and the importation of raw materials and machinery. Bilateral and multilateral trade deals also encourage foreign investment in the sector.

Under the EU-Vietnam Free Trade Agreement (EVFTA), for example, nearly all tariffs on goods traded between the two economies will be eliminated. The deal, expected to be ratified in 2018, is anticipated to boost Vietnam’s total exports to the EU by 4 to 6 percent, Viet Nam News reported June 30, 2018.

To promote the handicraft sector, in particular, the Ministry of Agriculture and Local Government organizes the Vietnam Craft Village Trade Fair (CraftViet). CraftViet’s aims include attracting investment in traditional craft villages and promoting the trade of local products.

The Vietnam Handicraft Exporters Association (VIETCRAFT), which organizes The Vietnam International Home Décor and Gift Fair – Lifestyle Vietnam, coordinates with the Ministry of Industry and Trade (MOIT) and other government and nongovernmental organizations to promote the fair. VIETCRAFT also cooperates with the government to support enterprises in exhibiting at NY NOW and other international trade shows.

Challenges

Tableware suppliers are concerned about balancing rising costs with price competitiveness to maintain profitability. Products from Vietnam are generally already priced about 20 percent higher compared with those from Chinese competitors.

Spending for various natural inputs, in particular, have risen at double-digit levels due to supply falling short of demand. Interviewed makers saw the cost of water hyacinth and rattan go up 20 to 30 percent in the past 12 months. Bamboo rates have increased by about 10 percent.

Labor-related expenses are also on the rise as minimum wages in the country continue to go up. Monthly rates for 2018 are more than 6 percent higher compared with 2017 levels.

Companies are also driven to offer better wages and benefits to retain skilled craftsmen and artisans. Hanoi’s traditional craft villages, for example, are facing a shortage of workers because many rural laborers have opted to go to go to industrial zones where the pay and benefits are better, according to an April 2018 report from Viet Nam News, citing the Vietnam and World Economy magazine.

To keep quotes competitive, suppliers typically opt to absorb increases in production cost and sacrifice margins. Consequently, they have limited funds to invest in upgrading their production systems, developing new products and other activities that will help them differentiate themselves from competitors.

To minimize the effect of raw material shortage on margins and production lead times, several companies are leveraging local access to key inputs and keeping a buffer stock. Some tableware makers are investing in machines to facilitate certain processes and expand production capacity, as well as improve product quality. Those offering ceramic models, for instance, are adopting gas-fired kilns in place of furnaces that run on straw or wood. In finishing, sanding machines are being used.

Industry composition

Most tableware suppliers that use bamboo, rattan and other natural materials are part of handicraft industry. These companies are typically small or midsize enterprises employing no more than 100 workers.

Makers of bamboo and rattan items can be found in more than 700 craft villages in the country. These villages are scattered across Vietnam, including in the provinces of Hanoi, Ha Tay, Da Nang, Quang Nam, Khan Hoa, Phu Yen, Phu Vinh, Bac Giang and Thai Binh.

Bamboo, coconut wood and acacia wood are among common options for dinnerware and serveware.

Simple, eco-friendly designs are on trend.

Suppliers have three to five people assigned to new product development.

Production of models made of bamboo and other natural materials is typically labor-intensive.

QC is conducted at every stage of the production process.

Production lead time is usually 60 to 70 days.

Prices depend mainly on raw material and labor costs.

Spending for raw materials have gone up at least 10 percent in the past 12 months.

Despite rising expenses, many suppliers plan to keep quotes at current levels in the next six months to remain competitive.

Materials & designs

Vietnam suppliers offer tableware items in various materials, which are typically sourced within the country.

Domestically sourced bamboo and wood are two materials adopted across the different product categories. The former is often from Nam Dinh, Thanh Hoa, Ninh Binh, Son La, Yen Bai and Tuyen Quang provinces. For acacia wood and other types of timber, Nam Dinh and Ha Tay provinces are the usual sources.

Clay for porcelain, stoneware and earthenware tea pots, mugs and cups is typically from Quang Ninh province. Glaze, however, is often imported from China.

For serving trays, table runners and placements, raw material options include rattan, water hyacinth and seagrass. Rattan is usually obtained from Thanh Hoa, Lam Dong, Nghe An, Son La and Yen Bai provinces. Water hyacinth is gathered in Tien Giang, Vinh Long, Hau Giang and other places in the Mekong Delta region, while seagrass is sourced from Quang Ninh, Hai Phong, Thai Binh, Nam Dinh and Thanh Hoa provinces.

Cotton and linen for table cloths, placemats and runners are usually procured in Ho Chi Minh City or the provinces of Ninh Binh, Hung Yen, Binh Duong and Hanoi.

Makers continue to combine materials in line with efforts to diversify selections. Releases in this line include bamboo trays with coiled seagrass bases, and placemats made of bamboo and rattan.

Suppliers also offer a wide range of options in terms of shape. In plates and bowls, asymmetrical and novelty designs featuring leaf, teardrop and floral motifs are growing in number. Teapots come in cubed and hexagonal forms in addition to the spherical types.

Color and pattern are also being employed to increase design variety. While white remains popular in dinnerware because of its versatility, suppliers offer buyers a wide range of bright and pastel options.

For patterns, nature-inspired ones such as those depicting flowers and leaves are common across the different categories, from carvings in wooden dinnerware and flatware to embroidery in table runners, coasters and placemats. Models featuring ethnic motifs are also available.

In upcoming releases, adoption of bamboo, rattan and other materials considered sustainable will remain a trend. For embellishments, makers are turning to recycled paper and eggshell are being used.

Tableware suppliers typically have three to five employees responsible for the development of new designs. Companies release five to seven new models per month, and they can customize products to buyers’ requirements.

Manufacturing & QC

Production bamboo, rattan and ceramic products remain labor-intensive, with most processes done using hand tools or simple machines.

To create trays and other items involving coiled rattan or bamboo, for instance, strips of the material are spun or coiled by hand around wooden or cement molds. The products are then sanded in preparation for the application of a finish, and this step is typically accomplished manually or with the help of simple machines.

For models in clay-based materials, the desired shape is typically achieved by pouring the material into molds or through the use of turntables. There are companies, however, that use casting machines.

Another stage often done manually is the application of paint, glaze and other finishes.

QC checks are conducted at every stage of the production process, from raw material inspection to final product testing. Most tableware suppliers have three to five people responsible for inspection and testing. Large companies, however, may have at least 10 QC personnel.

Many companies are compliant with internationally recognized standards, including those of the US Food and Drug Administration (FDA) and the German Food & Commodity Laws, or the Lebensmittel-Bedarfsgegenstande und Futtermittelgesetzbuch (LFGB). Suppliers also usually comply with CE Marking requirements.

Production lead time is usually 60 to 70 days from the confirmation of the order.

Pricing

Prices vary depending on the materials used, the complexity of the design and the size of the product. For sets, the number of pieces included is also a key price determinant.

Models made of rattan, bamboo, coconut shell and wood such as acacia or rosewood tend to be more expensive than plastic counterparts. Pieces with intricate details or decorative elements such as inlays, embroidery, carving or silver or gold plating, are also typically priced higher as they required different types of skills and longer work hours.

Prices are expected to remain relatively stable in the next six months despite raw material costs having gone up 10 to 30 percent. Suppliers are wary of raising their quotes due to the intense price competition in the global market.

To be able to offer competitive quotes, suppliers are improving their management and production systems to expand capacity, avoid raw material wastage and errors, and improve efficiency. Makers of ceramic tableware, for example, are investing in larger kilns.

Price guide

Price guide: Bowls

Less than $3Rice or salad bowl; bamboo; meets FDA or LFGB requirements